COMMISSIONER OF WEALTH-TAX vs. HH RAJMATA SHRI GULABKUNVERBA SAHEBA OF NAWANAGAR TRUST

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WTR/45/1995HC GujaratGJHC24022727199508 November 2001Author: HONOURABLE MR. JUSTICE MOHIT S. SHAH,HONOURABLE MR. JUSTICE D.A.MEHTA2 pages

AI SummaryAllowed

What did the High Court hold?

The High Court, following its previous decision dated July 24, 2001, in a reference concerning the same assessee (Wealth-tax Reference No. 10 of 1986), answered the question referred to it in the affirmative. This means the High Court held that the assessee trust is indeed entitled to the grant of exemption under Section 5(1)(xxiii) of the Wealth-tax Act. The reasoning is based on the precedent set by the earlier judgment, which presumably dealt with the same legal and factual matrix regarding the assessee's eligibility for the exemption. The ratio decidendi is that when a prior judgment on identical facts and law exists for the same assessee, it should be followed. The reference is disposed of with no order as to costs, and the exemption granted by the Tribunal stands.

What were the facts?

This case involves a reference made by the Income-tax Appellate Tribunal (ITAT), Ahmedabad Bench, at the instance of the revenue. The reference concerns the assessment years 1980-81 and 1981-82. The question referred pertains to whether the assessee trust is entitled to exemption under Section 5(1)(xxiii) of the Wealth-tax Act. The High Court heard the learned counsel for the revenue. Despite being served, no one appeared for the respondent-assessee. The High Court's attention was drawn to a previous decision dated July 24, 2001, in a similar reference concerning the same assessee.

What were the issues?

1. Whether the Appellate Tribunal is right in law and on facts in holding that the assessee trust is entitled to the grant of exemption under Section 5(1)(xxiii) of the Wealth-tax Act? Assessee's Contention: The judgment does not record any specific contentions made by the assessee. However, the fact that the ITAT granted the exemption implies the assessee argued for its eligibility under the said section. Revenue's Contention: The revenue, through its learned counsel Mr. B.B. Naik, has brought the reference before the High Court, indicating disagreement with the ITAT's decision to grant exemption. The revenue likely argued that the assessee trust does not meet the conditions stipulated in Section 5(1)(xxiii) for claiming the exemption.

Which sections of the Income-tax Act were involved?

Section 5(1)(xxiii)

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

WEALTH TAX REFERENCE No 45 of 1995

For Approval and Signature:

Hon'ble MR.JUSTICE M.S.SHAH and Hon'ble MR.JUSTICE D.A.MEHTA

============================================================ 1. Whether Reporters of Local Papers may be allowed : NO to see the judgements?

To be referred to the Reporter or not? : NO 3. Whether Their Lordships wish to see the fair copy : NO of the judgement?

Whether this case involves a substantial question : NO of law as to the interpretation of the Constitution of India, 1950 of any Order made thereunder?

Whether it is to be circulated to the Civil Judge? : NO -------------------------------------------------------------- COMMISSIONER OF WEALTH-TAX Versus HH RAJMATA SHRI GULABKUNVERBA SAHEBA OF NAWANAGAR TRUST -------------------------------------------------------------- Appearance: 1. WEALTH TAX REFERENCE No. 45 of 1995 MR BB NAIK with MR MANISH R BHATT for Petitioner NOTICE SERVED for Respondent No. 1

--------------------------------------------------------------

CORAM : MR.JUSTICE M.S.SHAH and MR.JUSTICE D.A.MEHTA

Date of decision: 08/11/2001

ORAL JUDGEMENT (Per : MR.JUSTICE M.S.SHAH)

In this reference at the instance of the revenue, the Income-tax Appellate Tribunal, Ahmedabad Bench has referred the following question for our opinion in respect of assessment years 1980-81 and 1981-82 :-

"Whether the Appellate Tribunal is right in law and on facts in holding that the assessee trust is entitled for grant of exemption u/s. 5(1)(xxiii) ?"

We have heard Mr BB Naik, learned counsel for the revenue. Though served, none appears for the respondent-assessee.

Our attention has been invited to the decision dated 24.7.2001 in Wealth-tax Reference No. 10 of 1986 which was in the case of this very assessee.

Following the aforesaid decision, we also answer the question referred to us in the present reference in the affirmative i.e. in favour of the assessee and against the revenue.

The reference accordingly stands disposed of with no order as to costs.

(M.S. Shah, J.)

(D.A. Mehta, J.) sundar/-

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